Starmer: my growth mission will make every family better off

Keir Starmer will today (Monday) spell out how Labour’s growth mission will improve the lives of families across the country, inviting people to “judge me on whether you feel better off after five years of a Labour government.”

The Labour leader will say that Labour’s plan to achieve the highest sustained growth in the G7 is the “only show in town” to lead Britain out of the Tories’ “low wage, high tax, doom-loop.” 

Starmer will also issue a stark warning that another term of Tory government will leave British families worse off than their Eastern European counterparts – something that was unthinkable a decade ago.

It comes as analysis reveals that, on current trajectories, the UK will be poorer per person than Poland by 2030, and by both Hungary and Romania by 2040.

Starmer will say: “we need to be frank about the path of decline the Tories have set our country on. The British people are falling behind while our European neighbours get richer. In the East as well as in countries like France and Germany. I’m not comfortable with that. Not comfortable with a trajectory that will soon see Britain overtaken by Poland. Nor am I prepared to accept what the consequences of this failure would mean.”

And he will go on to say that it will be working people who continue to suffer from Tory failure: “I don’t want a Britain where young people, in our great towns and cities, are left with no option but to get out. A brain drain - not just to London or Edinburgh, but to Lyon, Munich and Warsaw.  That’s not the future our country deserves.”

Starmer will also contrast Labour’s ambitious mission with the Tories’ sticking-plaster promises, saying: “this is about much more than cherry-picking numbers on a spreadsheet … it’s about national renewal and national pride… We’ve got to find the courage to take on vested interests.”

“So, if you think it’s not government’s role to shape markets, that we’re only here to serve them; or that a labour market which locks in low pay and productivity is something beyond reform; or that the planning system should favour the already wealthy, not the new houses, wind farms and laboratories we need to create more wealth…then that’s not going to work for us. That’s not going to work for growth.”

Starmer will today, along with Shadow Chancellor Rachel Reeves, begin to flesh out detail of how Labour will achieve their first mission of securing the highest sustained growth in the G7.

The key to Labour’s growth mission is the Labour leader’s “fundamental belief … [that] … unless we unlock the potential of every region and every nation, we will never fix our economy.”

He will lay out how higher growth will be passed straight to families - meaning people feel better off, high streets are a source of pride again, public services improve and there are opportunities available all across the country.

Built on the foundation of strong fiscal rules that will ensure the country never again sees the economic chaos caused by the Tories’ kamikaze budget, Labour’s Green Prosperity Plan will provide the “catalytic investment” that will see jobs, opportunity and wealth spread across the country.

Alongside a beefed up British Business Bank, a new offer on skills training, a modern industrial strategy and the party’s Make Brexit Work plan, Starmer will say that Labour already has: “…a credible, long-term plan which represents the determination of our party to create more wealth.”

Shadow Chancellor Rachel Reeves will underline the importance of growth saying that Britain: “…has immense potential but we’re being left behind. With Labour’s mission we will increase economic growth to drive higher living standards and lower poverty, leading to good jobs and stronger public services.”

Laying out the challenge ahead, Starmer will say: “Here in this document - the mission: ‘Secure the highest sustained growth in the G7.’ A measurable goal. An invitation for the British people to judge me on whether they feel better off after five years of a Labour Government.”

Ends

Notes to editors

• World Bank data shows that the UK had a GDP per capita of $44,979 in 2021 (latest available data) compared with $34,915 in Poland, and $33,593 in Hungary, and $30,777 in Romania.
• UK GDP (Gross Domestic Product) per capita grew at an average annual rate of 0.5% in real terms from 2010-21, compared to 3.6% for Poland, 3% for Hungary and 3.8% for Romania.
• Assuming these trends continue, by 2030, the UK will be around US$600 (PPP adjusted) poorer per person than Poland.
• By 2040, the UK will be around US$12,000 and US$8,000 poorer per person than Romania and Hungary respectively.

• Starmer and Reeves will on Monday host a roundtable of business guests including Deborah Meaden, Mark Carney, John Allan, Jagjit Chadha and Paul Nowak.

Business endorsements include:

Paul Drechsler CBE, former president of the CBI said:

“It is really encouraging to see such an ambitious plan for growth reflecting views of many Business Leaders across the country; with a Modern Industrial Strategy at its core, that taps into many of the UK’s greatest strengths in Science, Technology, Services and Universities. 

“Specific actions throughout should delight many in business; reform of apprenticeship levy and planning, listening to business and collaboration, and more and better devolution. Above all a commitment to greater certainty and stability will be warmly welcomed” 

Dame Carolyn Fairbairn, former Director General, CBI said: 

“Labour’s ‘economic mission’ lays a promising foundation for injecting much-needed growth back into the UK economy. 

“The magic formula for a growing economy is not rocket science - it’s predictability of policy, a long term approach, and a business friendly environment. 

“The UK has lacked all three ingredients in recent years; Labour’s proposals could help put them back. There’s much heavy lifting to do, but the idea of true partnership with business to build predictable long term policy, particularly in skills, education, innovation and infrastructure, is the right direction of travel from Labour.”

Iain Anderson, Executive Chairman, H/Adviser Cicero said: 

“We desperately need strong growth for our country. To do that we need a new partnership between policymakers and business. 

“Labour is taking the time to understand what business needs to invest in Britain. Restoring trust in our institutions and creating long term plans will make investors confident in our country again.”

John Allan, business leader and chair said:

“Speaking personally, I believe many businesses will welcome Labour’s commitment to achieving sustained economic growth. 

“Growth can best be achieved by a partnership between Govt and business. Now we need to work together to create a detailed plan so that, if Labour form the next Govt, they can hit the ground running on day 1. 

“I believe Labour understand the need to do this. Achieving good levels of growth will take time but only through growth will we be able, as a nation, to improve standards of living and to fund better public services.”

Lord Jim O'Neill, economist and crossbench peer said: 

“One of the UK's biggest challenges on growth is the lack of investment.

“These proposals, including an enhanced role for the OBR and reforms to the British Business Bank, are important steps towards unlocking that investment and meeting the ambition on growth.”